KUALA LUMPUR: Amendments to the Penal Code and Criminal Procedure Code to curb online financial frauds and mule accounts were tabled in the Dewan Rakyat on Tuesday(July 9).
The Penal Code (Amendment) Bill 2024 and Criminal Procedure Code (Amendment) Bill 2024 were tabled for the first reading by the Minister in the Prime Minister's Department (Law and Institutional Reforms), Datuk Seri Azalina Othman Said.
The Penal Code (Amendment) Bill 2024 seeks to provide for offences related to payment instruments or accounts at financial institutions—as a measure to address the alarming rise in online financial fraud.
The proposed amendment to the Penal Code(Act 574) would also include new sections 424A, 424B, 424c, and 424D.
“The proposed new section 424A seeks to provide for the offence and penalty for possession or control of any payment instrument of another person or any account of another person at a financial institution without lawful authority or lawful purpose,” the bill read.
This offence is punishable by a fine of between RM5,000 and RM50,000, imprisonment of six months to five years, or both.
The proposed 424B stipulates the offence and penalty allowing another person to control or possess payment instruments or an account at a financial institution without lawful authority or purpose.
Offences under this proposed section are punishable by a fine between RM10,000 and RM100,000. They also carry a prison term of not less than one year and up to seven years or both.
Under subsection 424c(1), individuals who directly or indirectly engage in transactions using their payment instruments or accounts for unlawful purposes can be punished with a prison term of three to 10 years or a fine of between RM 10,000 and RM150,000 or both.
As for unlawful transactions conducted using another person’s payment instruments or account, under subsection 424c(1)—a fine of between RM10,000 and RM150,000 or a prison term of three to 10 years, or both can be imposed.
The financial institutions here refer to licensed banks under the Financial Services Act 2013(Act 758), licensed Islamic Banks under the Islamic Financial Services Act 2013(Act 759), and the institutions prescribed under the Development Financial Institutions Act 2002.
Payment instruments refer to those designated under Act 758 and Act 759.
As for the Criminal Procedure Code amendments, a new section 116D was proposed.
This proposed amendment empowers a police officer not below the rank of Sergeant to seize or prohibit dealing involving money held or suspected to be held in any payment instrument or account at financial institutions.
The police officer can act if they have reasonable cause to suspect that an offence has been committed, if the money has been used or is intended to be used to commit an offence or if the money constitutes evidence of an offence.
The second reading is scheduled for the current Dewan Rakyat meeting.
